Political Economy of The Us-China Import Tariff Policy to Agriculture and Technologies Commodities (2016-2019)


Trade War, Agriculture, and Technology


This study studies the impact of increased tariff policy between U.S and China. U.S is a leading hub of technologies products exported from China, while China is one the main importers of U.S agriculture export products. Chinese economy grows with US exports but US economy has shown decline due to its trade deficit with China. The present study adopts a qualitative research approach which uses descriptive analysis techniques to determine results on the basis of facts and figures. Findings show that during 2016-2019 US claimed that China violated the bilateral trade laws and rules of conduct under the Intellectual Property Rights Acts (IPRA). The Chinese economy has grown due to various factors such as China’s use of advanced technologies and innovation to generate new products with low cost which attracts costumers, and for the most part, exports finished goods to other countries. Agricultural commodities have been the major US commodity exported to China in recent years with 50% of the commodity production being exported to the country. Moreover, China dominates the value of US trade balance by experiencing a huge surplus and the commodity of agriculture is the only commodity that has no deficit for the US. On the other hand, the developments made by China through its various policies, especially in the field of technological innovation, makes China the only country that almost stands at par with the US.  The relationship between the two countries has an escalation of unharmonious relationship because the case study continues to evolve with the time that can lead to the termination of bilateral relations. As a result, the impact of this trade war is very detrimental to the US and beneficial to China, thus China in the future predicted will become a leading and advanced country in the economic field.